Please do not give solution in image format Indigo Corp. has a selling price of $20 and variable costs of $12.20 per unit. When 20,000 units are sold, profits equaled $28,470. What is the margin ofsafety?Multiple Choice$84,700$28,470$73,000$156,0006

The sales over and above break-even sales is called margin of safety sales.Margin of safety sales =…

Answered: Indigo Corp. has a selling price of $20…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Indigo Corp. has a selling price of $20 and variable costs of $12.20 per unit. When 20,000 units are sold, profits equaled $28,470. What is the margin of safety? Multiple Choice $84.700 $28,470 $73,000 $156,000